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| Congo enforces local ownership rule |
Democratic Republic of Congo mandates employee shareholding for copper and cobalt miners
The Democratic Republic of Congo will enforce a local ownership rule requiring miners to allocate 5% of shares to Congolese employees. This move directly impacts major copper and cobalt producers including Glencore, CMOC, and Ivanhoe. Meanwhile, the regulation aligns with the 2018 mining code, previously unevenly applied.
The Ministry of Mines, led by Louis Watum, stated that companies must submit compliance proof by July 31, 2026. However, firms operating in the Congo, the world’s second-largest copper producer and top cobalt supplier, face significant operational and financial adjustments. This rule could rebalance ownership structures across multiple industrial mining projects.
In addition, the 2018 mining code also reserves 5% of shares for private Congolese individuals. Although Watum’s letter did not directly address this requirement, the regulation signals a broader trend toward local participation in resource management. As a result, international investors and US companies are watching closely for market implications.
Global Mining Giants Brace for Regulatory Impact
Glencore, CMOC, Ivanhoe, ERG, and Zijin dominate Congo’s copper and cobalt output. The employee ownership mandate may affect project financing and governance models. Meanwhile, foreign companies previously dominated by Chinese investments may need to adjust strategies. In contrast, compliance will enhance local inclusion and could stabilize workforce relations, potentially affecting production schedules and export volumes.
Additionally, this local ownership rule is separate from state ownership requirements. Mining projects must still cede 10% to the state and 5% upon permit renewal. Therefore, combined with employee shareholding, companies may face up to 20% non-private ownership. These changes could influence global copper and cobalt pricing and supply chains.
ScrapInsight Commentary
The enforcement of Congo’s employee ownership rule may tighten local equity in major copper and cobalt mines. This policy could modestly reduce foreign investor control while strengthening workforce participation. Global supply chains should anticipate potential price volatility and operational adjustments, reflecting long-term shifts toward sustainable, locally inclusive mining practices.
